FM Sitharaman to meet bankers on loan recast on Thursday
4 years, 3 months ago

FM Sitharaman to meet bankers on loan recast on Thursday

The Hindu  

Ahead of the roll out of one-time debt recast for resolution of COVID-19 related stress in bank loans, Finance Minister Nirmala Sitharaman will hold a review meeting with bankers and heads of non-banking financial companies on September 3 for smooth and speedy implementation of the scheme. “The review will focus on enabling businesses and households to avail of the revival framework on the basis of viability, necessary steps like finalising bank policies and identifying borrowers, and discussing issues that require addressing for smooth and speedy implementation,” the Finance Ministry said in a statement. The finance minister will review the implementation of the resolution framework for COVID-19 related stress in bank loans on Thursday with the top management of scheduled commercial banks and NBFCs, it said. Kamath committee is working on recommendations on financial parameters like debt service coverage ratio, debt equity ratio post resolution and interest coverage ratio for recasting corporate loans.

Framework Bank Loan Loan Recast Loans Finance  fm  framework  bank  loan  recast  meet  ratio  loans  finance  sitharaman  bankers  review  resolution  debt  stress  implementation

History of this topic

Nirmala Sitharaman Asks Banks Not to Take Harsh Steps For Loan Recovery
1 year, 5 months ago

Nirmala Sitharaman Asks Banks Not to Take Harsh Steps For Loan Recovery

Deccan Chronicle  

MUMBAI: Union Finance Minister Nirmala Sitharaman on Monday said that both public and private sector banks have been instructed not to take harsh steps to recover loans and that they should handle such cases with sensitivity. The central bank said banks, non-banking financial companies, cooperative banks, housing finance and asset reconstruction companies should ensure recovery agents desist from publicly humiliating …

FM Nirmala Sitharaman to meet chiefs of PSU Banks on Saturday
1 year, 9 months ago

FM Nirmala Sitharaman to meet chiefs of PSU Banks on Saturday

The Hindu  

Finance minister Niramala Sitharaman will meet managing directors of public sector banks on Saturday to review performance against the backdrop of the failure of a few banks in the U.S. and the liquidity crisis faced by Credit Suisse. The meeting is going to take stock of the progress made by banks in achieving targets set for the various government schemes, …

Don't intimidate borrowers, no calling before 8 am & after 7 pm, RBI directs loan recovery agents
2 years, 4 months ago

Don't intimidate borrowers, no calling before 8 am & after 7 pm, RBI directs loan recovery agents

India TV News  

RBI to borrowing agents: The Reserve Bank of India issued a fresh instruction, which directs loan recovery agents not to intimidate borrowers. While issuing additional instructions to regulated entities including banks, NBFCs and ARCs, Reserve Bank said it has observed that recovery agents are deviating from its instructions with regard to the recovery of loans. RBI has issued guidelines from …

Union Budget 2021: Nirmala Sitharaman should give special focus on financial sector to kickstart economy
3 years, 11 months ago

Union Budget 2021: Nirmala Sitharaman should give special focus on financial sector to kickstart economy

Firstpost  

The pandemic has thrown many traditional fiscal management measures to the wind and challenged the regulators to the hilt. As India looks to recover from the devastating COVID-19 blow, the financial sector, the backbone of the economy that holds it all together, should get special attention. Here are some of the key suggestions which Finance Minister Nirmala Sitharaman could consider …

The Hindu Explains | Why is the RBI worried when volume of bad loans declined in the September quarter?
3 years, 11 months ago

The Hindu Explains | Why is the RBI worried when volume of bad loans declined in the September quarter?

The Hindu  

The story so far: After losses in two consecutive years, India’s scheduled commercial banks turned profitable in 2019-20. The Reserve Bank of India reckons that the first half of 2020-21 saw even greater improvements in banks’ vital statistics, with non-performing assets falling to 7.5% of outstanding loans by September 2020. What former Chief Economic Adviser Arvind Subramanian had called India’s …

Non-performing loans in Indian banking sector to rise in next 12-18 months: S&P
4 years, 1 month ago

Non-performing loans in Indian banking sector to rise in next 12-18 months: S&P

The Hindu  

Non-performing loans in the Indian banking sector is likely to witness an uptick and may shoot up to 11% of gross loans in the next 12-18 months, S&P Global Ratings said on Tuesday. It said forbearance is “masking” problem assets for Indian banks arising from COVID-19 and the financial institutions will likely have trouble maintaining momentum after the proportion of …

Non-performing Loans in Indian Banking Sector to Rise in Next 12-18 Months: S&P
4 years, 1 month ago

Non-performing Loans in Indian Banking Sector to Rise in Next 12-18 Months: S&P

News 18  

Non-performing loans in the Indian banking sector is likely to witness an uptick and may shoot up to 11 per cent of gross loans in the next 12-18 months, S&P Global Ratings said on Tuesday. It said forbearance is ”masking” problem assets for Indian banks arising from COVID-19 and the financial institutions will likely have trouble maintaining momentum after the …

IMF’s debt restructuring programme should help countries overcome fiscal stress: FM
4 years, 2 months ago

IMF’s debt restructuring programme should help countries overcome fiscal stress: FM

Live Mint  

Finance Minister Nirmala Sitharaman said the International Monetary Fund's debt restructuring programme should aim at helping the countries overcome the fiscal stress caused by the coronavirus pandemic. ".it would be important to take into consideration the circumstances and concerns of both creditors and debtors and that in the process of debt restructuring, care must be taken to not saddle the …

Only Standard Loan Accounts as of March Can Be Recast Under Pandemic Scheme, Says RBI
4 years, 2 months ago

Only Standard Loan Accounts as of March Can Be Recast Under Pandemic Scheme, Says RBI

News 18  

The Reserve Bank of India has clarified that loans which have remained standard without any defaults as of March 1, 2020, will be eligible for restructuring under the pandemic-related resolution framework issued in August. In clarifications issued late last night to borrowers as well as lenders about the August 6 circular, RBI said a loan account that was due for …

RBI Accepts Recommendation For Separate Treatment of Aviation, Automotive, Roads Sectors
4 years, 2 months ago

RBI Accepts Recommendation For Separate Treatment of Aviation, Automotive, Roads Sectors

News 18  

Citing Kamath Committee recommendations, the Reserve Bank of India has informed the Supreme Court that it has accepted the recommendation for different treatment for sectors namely aviation, automobile manufacturing, roads and wholesale trading. Citing the September 7 special window notification, the RBI insisted that banks have sufficient flexibility to accommodate the impact of Covid-19 while specifying specific ratios for determining …

Debt resolution framework: A balance of relief and rigour
4 years, 3 months ago

Debt resolution framework: A balance of relief and rigour

Live Mint  

The Reserve Bank of India struck a balance between relief and rigour in its resolution framework for covid-related stress issued on 6 August 2020, giving businesses affected by the exogenous shock of covid a necessary reprieve by permitting restructuring without requiring change of control, while also creating strict boundary conditions for such restructuring. The central bank has prescribed five parameters …

RBI loan restructuring plan | A difficult choice for borrowers
4 years, 3 months ago

RBI loan restructuring plan | A difficult choice for borrowers

The Hindu  

The moratorium offered by banks and other institutional lenders ended last month. In this scenario, the Reserve Bank of India has announced a loan restructuring plan to offer relief to impacted borrowers, who may struggle to repay their debt over the short term, at least. Also, unlike the moratorium on term loans that was open for all, only those borrowers …

Loan moratorium: RBI likely to announce one-time loan restructuring guidelines soon
4 years, 3 months ago

Loan moratorium: RBI likely to announce one-time loan restructuring guidelines soon

Live Mint  

The Reserve Bank of India is likely to announce the financial parameters of its proposed loan restructuring scheme soon. In his interview to CNBC Awaaz, RBI Governor Shaktikanta Das said that banks can extend the loan moratorium by 3, 6 or even 12 months under the one-time restructuring. To mitigate the hardships faced by the borrowers during coronavirus pandemic, the …

Govt asks banks to roll out loan restructuring scheme by Sep 15, provide support to borrowers
4 years, 3 months ago

Govt asks banks to roll out loan restructuring scheme by Sep 15, provide support to borrowers

India TV News  

Finance Minister Nirmala Sitharaman on Thursday asked banks and NBFCs to roll out loan restructuring scheme for COVID-19 related stress by September 15, and provide adequate support to the borrowers following the lifting of moratorium on repayment of debts. During the meeting, the minister impressed upon the lenders that as and when the moratorium on loan repayments is lifted, borrowers …

Finance Minister Asks Banks to Roll Out Loan Restructuring Scheme by September 15
4 years, 3 months ago

Finance Minister Asks Banks to Roll Out Loan Restructuring Scheme by September 15

News 18  

Finance Minister Nirmala Sitharaman on Thursday asked banks and NBFCs to roll out loan restructuring scheme for COVID-19 related stress by September 15, and provide adequate support to the borrowers following the lifting of moratorium on repayment of debts. During the meeting, the minister impressed upon the lenders that as and when the moratorium on loan repayments is lifted, borrowers …

FM Nirmala Sitharaman to Meet Heads of Banks, NBFCs on Loan Recast Today
4 years, 3 months ago

FM Nirmala Sitharaman to Meet Heads of Banks, NBFCs on Loan Recast Today

News 18  

Finance Minister Nirmala Sitharaman will hold a review meeting with heads of banks and NBFCs on Thursday for smooth and speedy implementation of the one-time debt recast for resolution of COVID-19 related stress in bank loans. Besides assessing the preparedness of banks on the debt recast, sources said, the meeting will also review the progress of various schemes announced under …

Finance Minister Sitharaman to meet heads of banks, NBFCs on loan recast on Thursday
4 years, 3 months ago

Finance Minister Sitharaman to meet heads of banks, NBFCs on loan recast on Thursday

India TV News  

Finance Minister Nirmala Sitharaman will hold a review meeting with heads of banks and NBFCs on Thursday for smooth and speedy implementation of the one-time debt recast for resolution of COVID-19 related stress in bank loans. Besides assessing the preparedness of banks on the debt recast, sources said, the meeting will also review the progress of various schemes announced under …

RBI May Not Extend Moratorium on Repayment of Loans Beyond August 31
4 years, 3 months ago

RBI May Not Extend Moratorium on Repayment of Loans Beyond August 31

News 18  

The Reserve Bank is unlikely to extend the moratorium on repayment of bank loans beyond August 31 as an extension could impact the credit behaviour of borrowers without resolving the issues being faced by them following the outbreak of the COVID-19, sources said. It was only a temporary reprieve to borrowers affected by the pandemic, the sources said, adding that …

SBI Chief Says Will Look at Loan Restructuring after End of Moratorium
4 years, 3 months ago

SBI Chief Says Will Look at Loan Restructuring after End of Moratorium

News 18  

State Bank of India will consider loan restructuring for eligible borrowers after the end of moratorium period which draws to a close on August 31, according to its Managing Director Dinesh Khara. “Restructuring of eligible loans will also be considered as and when the moratorium comes to an end at the end of August,” he said, speaking at a conference …

RBI chief says loan restructuring plan will help revive Indian economy
4 years, 4 months ago

RBI chief says loan restructuring plan will help revive Indian economy

Live Mint  

New measures to allow Indian lenders to restructure loans will provide a “durable” resolution for cash-strapped businesses and help revive the economy, according to the central bank’s chief. “On one hand health of banks is very important and on the other hand businesses are under a lot of stress due to covid,” Reserve Bank of India Governor Shaktikanta Das said …

Finance Ministry Working with RBI on Need for Loan Restructuring, Says FM Nirmala Sitharaman
4 years, 4 months ago

Finance Ministry Working with RBI on Need for Loan Restructuring, Says FM Nirmala Sitharaman

News 18  

Finance Minister Nirmala Sitharaman on Friday said the government is working with the RBI on need for restructuring of loans to help industry tide over the impact of COVID-19. In principle, the idea that there may be a restructuring required, is well taken," Sitharaman said while addressing Ficci's National Executive Committee Meeting. Sitharaman said the Finance Ministry is working with …

Discover Related